BUYING OVERSEAS

The UK has one of the most expensive property markets in the world. However, there are bargains to be found in nearby countries, such as Spain or Italy.

Fiona Watts, of broker International Private Finance, said those hoping to do this would have to get a mortgage from a bank in the country they hoped to buy in.

“No Uk-based high street bank would offer you a mortgage on an overseas property,” she said. “A number of the larger retail banks in Europe have international lending departments, and are used to lending to both non-eu and EU citizens who aren’t residents.”

Each country has its own lending rules, and regulations for landlords.

Ms Watts explained that a £25,000 deposit would buy a €125,000 (£110,000) property in France, but stretch to just €85,000 in Spain and Portugal and €62,000 in Italy.

“The banks won’t take future rental income into account for affordability. They base their assessment on current income and future outgoings.

“The good news is there’s no such thing as a buy-to-let mortgage in Europe – once you purchase, you’re free to rent it out as you like.”